Anand: Central Banks May Be Too Sensitive to Markets

The transcript discusses William Hague's criticism of central banks, arguing that their policies have led to economic inequality and public debt. Central banks face a dilemma as their actions are criticized regardless of the outcome. The discussion also covers the role of liquidity in solvency crises and the sensitivity of central banks to market reactions.

What is the significance of the phrase 'to avoid the pain' in the context of the economic crisis?

In what way do market reactions influence central bank decisions as discussed in the text?